Sterling had a turbulent day yesterday hitting a low of €1.1267/£1. Sterling also depreciated against the US$. This was largely due to a decrease in the UK’s service sector activity over the last three months. Moreover, July consumer credit data showed an unexpected slow down in borrowing; alongside UK net mortgage lending remaining at a standstill. This data continues to demonstrate that economic recovery in the UK is far from robust. As a result, it makes the pound vulnerable and less appealing to investors. Out on Thursday is Nationwide House Prices data for August. Call in now for a quote.

In the Euro zone, the euro fell 0.5% against the US$ and against a majority of its counterparts as there is increasing speculation that the European Central Bank has terminated interest rate hikes for this year. Yesterday’s data showed a vigorous decline in Euro zone consumer confidence for a sixth time. This result is largely due to increasing fears of governments’ inability to repay their debt. Furthermore, Italian bonds declined for a seventh day. Out today is German Retail and Unemployment data. Call in now for a live price to avoid losing out.

The US dollar fell to a session low versus the yen as consumer confidence in the US plunged in August, hitting the lowest point in almost two years. Due to this, Americans are becoming increasingly concerned with future job prospects- a sentiment similarly shared by President Obama who recently recruited a top labour economist to tackle the battle against the US’s high level of unemployment. U.S stocks also fell yesterday whilst another report demonstrated a fall in home prices for the second quarter. Out today is data for US Factory Orders in July. Call in now for a live exchange rate.

Elsewhere, the yen benefited from bad U.S consumer confidence data by gaining 0.2% to the US $. On the contrary, Australia saw positive data yesterday as there was a 1% increase in building activity for the month of June. Ensure you protect yourself by speaking to one of the team here about your options.

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Sterling depreciated 1.5% against the US$ and was the second worst performer after the Swiss franc. The pound hit a low of $1.623/£1 on Friday after Federal Reserve Chairman, Ben Bernanke failed to provide any direct indication that the U.S. economy would receive further liquidity. The pound also depreciated 1.4% versus the euro last week, its steepest drop in two months. This is largely due to concerns over the British economy’s slow and anaemic growth. With further speculation that interest rates are likely to be left on hold until 2012, in addition to the UK needing another round of quantitative easing, market players are beginning to worry whether the UK can continue to with stand its austerity cuts. Today we will see data for July’s mortgage approvals as well as Consumer Confidence data for August. Call in now for a quote.

In the Euro zone, the euro hit a low against the US$ of $1.4327/€1 after Bernanke’s speech on Friday. Investors are worried over a second Greek bailout. However the euro regained ground yesterday against the Swiss franc trading more than 2% higher due to an increase in risk appetite. Monday’s data showed Italian consumer confidence falling to the lowest in more that two years. This of course does not help the ongoing tensions in the Euro zone. Out today is Euro zone consumer confidence and retail sales data so call in now for a live price to avoid losing out.

The US dollar made loses against the euro and yen on Friday after the long awaited speech by Federal Reserve Chairman, Ben Bernanke. He offered no details on how the central bank will encourage growth for the US economy and reported that the US economy grew by only 1% in the second quarter and that it was imperative for the country to reduce its high unemployment rate. Despite this, the US dollar regained significant ground yesterday as it rallied against the Swiss franc and yen. This was due to better than expected July consumer spending data and an increase in demand for US assets. This has reduced fears of a prospective US recession. On a less positive note, pending homes sales came in weaker than expected. US employment report is out this Friday which may cause significant movement, so call in for a rate.

Elsewhere, high yield currencies such as the Australian dollar rallied significantly against the US dollar on Friday. The Japanese yen also made gains as investors returned to it as worries over the US and Europe increased. Yesterday, there was an increase in risk appetite on speculation the global economy will recover. The Aussie dollar reached its highest point this month in addition to appreciating against a number of its counterparts. The Australian dollar strengthened 0.4% versus the dollar whilst the New Zealand dollar rose 2% over the past week. It has also been one of the best performers in comparison to the other 10 developed nation currencies. Take advantage and ensure you speak to one of our traders.

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After a relatively good week for sterling, yesterday the pound weakened against many of its major counterparts. Sterling dropped 0.6% versus the US dollar in addition to falling for a third consecutive day against the euro. Much of this was fuelled by a drop in U.K. consumer confidence in July as well as a drop in sentiment index as noted by Nationwide Building Society. On a positive note, U.K. government bonds erased loses which means 10 year yields have only changed by 2.47%. It is becoming apparent that this week’s assumption of sterling as a ‘semi haven’ is altering, particularly with yesterday’s comments from Bank of England Policy Maker, Martin Weale who has decided to put aside his call for an interest rate hike this month. Call in for a quote now.

In the Euro zone, the euro weakened against the US dollar but gained as much as 0.4% versus the Japanese yen. German stock markets fell by 4% in just 15 minutes yesterday as investors became concerned that the country’s public finances are deteriorating. Markets have begun to question the ability of France and Germany to effectively deal with the sovereign debt crisis after being regarded as the driving forces behind the euro zone for some time. German GDP growth came to a near standstill – call in now to ensure you don’t lose out.

The US dollar played to its safe haven status yesterday as it rose against a number of currencies on speculation that today’s Federal Reserve meeting will not call for new initiatives to stimulate the economy. There was weaker than expected unemployment figures which showed that jobless claims increased to 417,000. This week the US dollar dropped versus the yen and euro but regained its ground yesterday. With a combination of both good and bad economic data throughout the week, market players are eagerly awaiting Federal Reserve Chairman Ben Bernanke’s speech later today. Last year, he predicted the central bank’s second round of quantitative easing. Be prepared and get a quote now to stay protected.

Elsewhere, the yen fell against a basket of currencies as there was an increase in demand for the safety of US treasuries. The Australian dollar also decreased for a second day against the US dollar and 15 of its major peers. This is largely due to the fact that there has been a fall in consumer sentiment in Germany which has weakened the demand for higher yielding assets. Call in now and get a live rate.

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Sterling fell against the US dollar yesterday causing further loses as automatic ‘sell’ orders got triggered, hitting a low of $1.6375/ £1. The euro also climbed verses sterling by 0.5%. Investors suspect that sterling will struggle today and find direction only after Friday’s speech by Federal Reserve Chairman Ben Bernanke, in which he is expected to announce further monetary stimulus. Out today is CBI survey on retail sales and the second quarter estimate of GDP on Friday. There is worry that if data indicates fragmented UK recovery, the likelihood of the Bank of England adopting another round of quantitative easing will increase. Protect yourself and call in now for a rate.

In the Euro zone, the Euro made slim gains against sterling and the US dollar.
Further German manufacturing data came in better than expected, but it was the weakest rate of expansion for the past two years. Concern over the European debt crisis is causing European banks to cut their workforces 6 times faster than their US counterparts. The euro strengthened also off the back of speculation ahead of Fed Chairman Ben Bernanke’s speech – further monetary easing would see a flood of cheap US dollars being invested elsewhere. Call in now to ensure you are ahead of the game.

In the USA, the US dollar traded at a record low against the yen yesterday falling by 0.2%. This was due to a large number of market players ignoring a program which urged firms to exchange yen for foreign assets. Data for the USA came in better than expected showing that durable goods orders climbed in July. Home prices increased by 0.9% in June. Despite this, property prices dropped by 5.9% compared to this time last year. There is concern that U.S consumer business will continue to weaken in comparison to markets such as China which continue to grow. Call in now and get a live rate.

Elsewhere, the Swiss franc gained against a number of currencies rising for the first time in three days against the US dollar. This is largely due to a decrease in German business confidence and an increase in Greek bond yields. There is speculation that an interest rate hike is now unlikely to happen in South Africa as South African 4 year bonds fell, gaining an upper hand on the US dollar. Protect yourself and call in now for a live exchange rate.

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Sterling strengthened by 0.4% against the US dollar yesterday hitting $1.6534/£1. Sterling was also helped by positive data that showed an improvement in British factory orders in August. Although this had minimal impact on the currency, had this come in lower, it is likely that it would have had a negative impact, pushing sterling lower. The fact that other currencies are not appealing to investors is helping sterling gain ground – especially against the euro and US dollar. UK data later on this week will include CBI retail sales and an estimate of second quarter GDP. If this data is good, we are likely to see sterling gain further. Take advantage and call in now for a live quote.

In the euro zone, the single currency rallied against the US dollar and sterling after stronger than expected German manufacturing data. Although a separate industry report indicated German investor confidence decreased in August, it was overlooked by investors. Europe’s debt and banking crisis is still at the forefront of many investors’ minds with speculation that the European Central Bank may soon have to adopt monetary easing of its own. Later on in the week we have German retail sales data as well as euro zone industrial new orders. Call in now for a live price to protect yourself from unpredictable currency movements.

In the USA, the US dollar weakened against a most currencies yesterday as manufacturing data from Germany and China came in better than expected. The dollar fell against the Swiss franc and New Zealand dollar. US new home sales in July came in lower than expected with purchases falling to 0.7%, the lowest level in 5 months. Investors are waiting for Friday as there is speculation that a key central banking retreat will see Federal Reserve Chairman Ben Bernanke announce a fresh round of monetary easing that would see the US dollar weaken. Call in now for a live price to avoid losing out.

Elsewhere, better than expected Chinese factory data slightly eased global worries and helped raise stocks which in turn helped global markets. The Australian and New Zealand dollar gained from this on improved risk appetite. South African bonds also strengthened for a seventh day with expectation that the central bank will push for an interest rate hike soon. Call in now for a quote.

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Sterling rose against the US dollar yesterday hitting a high of $1.6520/£1 as markets became more and more concerned with turbulence in the financial markets and particularly the sovereign debt crisis. Sterling also made gains against the euro. Investors are currently viewing sterling as a ‘semi safe haven’ as it is perceived to be in a relatively good fiscal position in comparison to the US and Euro zone, but there are still concerns over the UK’s recovery. Today there is business activity data from the CBI and a member of the Bank of England speaks so ensure you don’t miss out and call in for a live exchange rate.

In the euro zone, the euro slipped marginally against the US dollar and trading was fairly flat with many investors sitting on the sidelines ahead of an important speech by Fed Chairman Ben Bernanke later this week. European shares dropped as investors became concerned that European officials are taking too long to resolve the sovereign debt crisis, with German chancellor Angela Merkel sinking plans for a single “Eurobond” over the weekend. Out later today there is a wide array of European data so call in now to make sure you don’t lose out due to adverse market movements.

In the USA, the US dollar weakened against commodity linked currencies yesterday on rumours that the US Federal Reserve will announce another round of emergency stimulus for the economy. On a more positive note, US stocks (particularly energy stocks) gained in early trading yesterday, making a comeback from a worrying four week decline. On Friday, there is a key meeting at Jackson Hole in the USA amongst central bankers and many market players are concerned that this will mean further stimulus being announced by the Federal Reserve. Call in now for a live price to avoid losing out.

Elsewhere, the Swiss National Bank tried to deter investors from purchasing the currency as the astronomic rise in demand for the Swiss franc impacts exporters. It has been rumoured that Japan is set to do the same to further weaken the yen. Oil prices dropped as Libyan rebels reached Tripoli overnight and despite continued fighting many feel that the end of the conflict is near. Call in now for a quote.

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Sterling hit a 3 ½ month high against the US dollar on Friday as investors favoured sterling over the US dollar and euro on concerns over the sovereign debt crisis. With so many concerns over sovereign debt, sterling also gained support from data that showed the UK government’s public finances posted a surplus in July, putting the government on track to meet its deficit reduction plan. The focus has shifted away from the UK for now as investors look much more closely at the USA and euro zone, but that does not mean the UK is performing well. Simply that it is the ‘least worst’ out of the three. Out this week there is consumer confidence data and revised 2nd quarter GDP data on Friday. Call in now for a live exchange rate.

In the euro zone, the euro was helped to an extent by discussions over central “Eurobonds”, with markets optimistic over the prospect of a centralised funding option, rather than individual governments taking responsibility for their borrowing. This prospect is unlikely for a number of years – if at all. One key European Central Bank official expressed concern over the weekend that countries in the region are not pushing through parliamentary approval of the European Financial Stability Fund quickly enough. This week sees a wide array of economic activity figures for the region including services and manufacturing figures so call in now for a live price to avoid losing out.

In the USA, the US dollar continues to suffer from negative sentiment related to stock markets and debt in the country. As such, the currency was significantly lower on Friday as investors looked for safety in other currencies. Out this week, there is new home sales figures on Tuesday, unemployment data on Thursday and the big release is on Friday in the form of GDP figures for the previous quarter. Ensure you protect yourself by speaking to one of the team here about your options.

Elsewhere, as Libyan rebels enter Tripoli we could see some volatility on markets depending on what transpires. The situation there is still fluid, but given the region’s relationship with oil, we could see some price movement on that and other commodity based currencies such as the Canadian dollar.

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Sterling had a positive end to the week, breaking above €1.15/£1 against the euro and nearly hitting $1.66/£1 against the US dollar earlier in the week. Retail sales out today for July increased by a slim 0.2% showing consumers and retailers are still in difficult circumstances. This did cause sterling to fall slightly yet it still remained within sight of Wednesday’s 3 ½ month high of $1.6590/£1 against the US dollar. Sterling held up against the euro as well as European shares showed signs of weakening. Moreover, with interest rates placed on hold by a unanimous vote from the Bank of England earlier in the week, there is now speculation that quantitative easing could be back on the table. At a time when sterling is performing better in comparison to the euro and US dollar, take advantage and call in to get a live quote.

In the euro zone, it has been a poor week for the single currency with European GDP figures disappointing earlier in the week. Germany (seen as the only real economic powerhouse in the region) posted woeful growth figures as the region showed growth of only 0.2% - a drop from last month’s 0.8%. Investment bank Morgan Stanley cut its euro zone growth forecast as a key member of the European Central Bank said that he was fearful of an extended period of low inflation and poor growth. This week also saw a rather lacklustre response to a meeting between French and German leaders after they announced new measures to combat the sovereign crisis. Out today we have German wholesale price inflation so speak to a trader to ensure you don’t lose out.

In the USA, there was mixed economic data yesterday with jobless claims rising to 408,000 - the highest this month. On the other hand, consumer price inflation came in higher than expected with a 0.5% increase for June. This meant core CPI rose 1.8% year on year. The US dollar did show signs of strength alongside the Swiss franc and the yen as investors looked to safer haven assets on the back of a poor week in Europe. Call in now for a live exchange rate.

Elsewhere, the Canadian dollar also fell for most of the week against the US Dollar as concerns abound over the global economy’s slow recovery. Furthermore, Canada’s rate of inflation is predicted to show a slow down. The South African rand slipped by 1.5% on Thursday against sterling, hitting the lowest level for several months. Call in now to speak to a trader for a price.

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Sterling strengthened to a 3 ½ month high against the US dollar yesterday after investors reversed bets against the pound and there was heavy demand from a UK clearing bank related to merger activity. The pound reversed earlier losses as the Bank of England’s meeting minutes showed that the Monetary Policy Committee were more downbeat than normal. Policymakers Spencer Dale and Martin Weale ended calls for an interest-rate increase this month as the euro-zone crisis and signs of a global economic slowdown threatened to hurt growth in Britain. In addition, unemployment claims increased by 37,100 last month. Call in now for a live exchange rate.

In the euro zone, new proposals from the French and German premiers met a cold response and failed to convince investors that the region’s debt crisis was closer to being solved. The focus was on long term stability and greater accountability for balancing budgets in the region. Responsibility for warding off fresh market attacks remains with the ECB, which has bought record levels of Italian and Spanish debt recently to keep borrowing costs manageable for the two countries. There is a lot of volatility around so ensure you protect yourself by speaking to a trader sooner rather than later.

In the USA, the US dollar fell against most of its major counterparts as investors sought higher-yielding assets in other currencies. Global stock markets gained yesterday, helped by better than expected financial results from US retailers. A report showed rising wholesale prices that saw investors worry about potential inflation in the country. A general improvement in risk appetite saw the US dollar drop. Call in now for a live exchange rate.

Elsewhere, the Canadian dollar strengthened against the US dollar as increased demand for higher-yielding assets boosted U.S. stocks and commodities, benefiting growth-linked currencies. The Swiss franc strengthened after the Swiss central bank stopped short of announcing a target rate or temporary peg to the euro in its third attempt in as many weeks to drive down the currency. Protect yourself by talking to one of the team today.

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Sterling gained yesterday against the US dollar after figures released showed that UK inflation accelerated more than forecast. With many analysts expecting a drop in inflation, figures showed that the annual rate increased to 4.4% in July – up from 4.2% the previous month and more than the 4.3% that had been forecast. Sterling gained against most of its major counterparts as the likelihood of further quantitative easing fell. Later today, the Bank of England releases the minutes from its previous meeting when it left rates on hold. The results could be mixed, given yesterday’s inflation and Bank of England governor Mervyn King’s recent comments regarding potential further monetary stimulus. Call in now to ensure you don’t lose out due to adverse market movements.

In the euro zone, the euro fell after data showed that GDP growth in the region slowed more than had been forecast, adding to concerns that nations in the region will struggle to rein in budget deficits. GDP rose by a mere 0.2% in the 2nd quarter – lower than the 0.3% forecast and the worst figures since late 2009. The euro also slipped ahead of a key meeting between French President Sarkozy and German Chancellor Merkel in which they were expected to discuss ways to tighten up enforcement of EU budget rules. Markets are concerned that most avenues have been exhausted. Call in now for a live exchange rate.

In the USA, US industrial production climbed in July by the most this year, gaining 0.9% after a 0.4% gain the prior month – beating expectations. In addition, credit rating agency Fitch Ratings affirmed the United States' AAA rating with a stable outlook. This boost of positive news helped increase risk appetite amongst investors and they moved out of the US dollar, which saw it weaken. Out later today there is wholesale price inflation, so ensure you protect yourself against any sudden moves by speaking to a member of the team now.

Elsewhere the Swiss franc posted losses for a 4th straight day as speculation was rife that the Swiss central bank would impose a currency peg against the euro. In addition, the South African rand gained by 1.6% against the euro on the news over European growth. Call in now to speak to a trader for a price.

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Sterling gained against the US dollar yesterday, but failed to break beyond $1.64/£1 as selling from sovereign investors hampered its efforts, undermined by concerns about the UK recovery. Figures showed that asking prices for residential property fell this month from a year earlier for the first time since September 2009 dropping by 3.4% in London, underlining the patchy recovery despite stubbornly high inflation. Investors expect the Bank of England to keep interest rates at record lows into 2013, with a growing feeling that we may see another round of quantitative easing before too long. Out today we have inflation figures so call in now for a live exchange rate.

In the euro zone, the euro gained to a 3 week high against the US dollar, strengthening as investors expected a positive outcome to today’s meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel to discuss the debt crisis. These gains are likely to be capped by persistent worries over the region’s banking sector and a perceived risk to France’s credit rating. In addition, the euro was helped by large gains against the Swiss franc on speculation that the Swiss currency would be pegged against the euro in an attempt to weaken the Swiss franc and help Swiss exporters. GDP figures are released today so call in now for a live exchange rate.

In the USA, stock markets rose following a three-week drop for the S&P 500 Index on improved risk appetite, but data showing foreigners were net sellers of all US assets in June for a second straight month and poor manufacturing figures weighed on dollar sentiment. In addition, Vice President Joe Biden is expected to discuss China’s currency valuation on his upcoming trip to the country. The Chinese yuan is kept artificially cheap and has damaged US manufacturing as producers are priced out by cheaper Chinese manufacturing.

Elsewhere, the Swiss franc dropped to two-week lows against the euro and dollar on Monday on speculation the Swiss National Bank could further act to curb strength in the currency by setting an exchange-rate target as early as this week. The South African rand strengthened against the US dollar for a fourth day as commodity prices rose on optimism the global recovery is intact, supporting demand for higher-yielding assets. Call in now for a live rate.

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Sterling gained against the US dollar on Friday, boosted by a better tone in stock markets but hampered by lingering concerns over the UK economy and the fact that interest rates are set to stay on hold for some time. Sterling has begun to demonstrate signs of safe-haven demand as global investors diversify away from the US dollar and euro, but this wasn’t helped by the widespread looting and images of burning buildings that dominated news headlines last week. In the coming week we have UK inflation figures released tomorrow that came in at 5%. Whilst the Bank of England has largely given up on its 2% target, it will hope that they are lower. Wednesday sees the minutes from the Bank’s most recent meeting. Call in now for a live exchange rate.

In the euro zone, the extreme volatility last week and widespread rumours over the sovereign debt crisis left investors very jumpy. News over the weekend suggested that German ministers were close to caving in to the idea of a common ‘euro bond’. This move towards a closer fiscal union is seen as a great move and would certainly reduce the volatility we have seen on bond markets in relation to Italian, Spanish and Greek government bonds. Infamous former hedge fund manager yesterday called for Greece and Portugal to quit the euro completely. Out this week we have European 2nd Quarter GDP – bad results would worry the markets so call in now for a live exchange rate.

In the USA, markets will be hoping for a less turbulent start to the week than last Monday when stock markets plummeted after the US credit rating was downgraded. However, comments from the head of the World Bank will not help. Robert Zoellick warned that recent events had pushed us into a new ‘danger zone’ and that leaders in the US and elsewhere should wake up to the severe loss in market confidence in their economic leadership. Call in now for a live exchange rate.

Elsewhere, Swiss and Japanese authorities are simultaneously threatening to take action to halt the appreciation of their currencies against the US dollar. As investors seek refuge from risk amid increased risk and turmoil, they are increasingly turning to the Swiss franc and Japanese yen. The euro and US dollar have jumped by nearly 3% against the Swiss franc this morning on rumours that the Swiss National Bank will peg the exchange rate against the euro. Call in now for a live price.

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Sterling strengthened against the US dollar on Thursday after U.K. Chancellor of the Exchequer George Osborne rebuffed opposition demands to review spending cuts. In a turbulent week that has seen wide swings up and down on the stock markets and the Bank of England cut the UK’s growth forecast, sterling gained on Thursday as the coalition stood by its austerity measures. Widespread rioting and looting had some impact earlier in the week, seeing sterling slip as investors questioned the UK’s new found safe haven status in the face of widespread destruction. However, this was soon brought under control and sterling recovered ground towards the end of the week. Call in now for a live price.

In the euro zone, the euro gained against the Swiss franc on Thursday, surging 6%, boosted by talk that the Swiss currency could be pegged against the euro. This week we have seen the ECB taking action to stabilise bond markets by purchasing Italian and Spanish bonds and this seems to have calmed bond markets to an extent. In France, speculation was rife this week that the country would suffer a credit rating downgrade given the country’s exposure to Greek debt. In addition, 4 countries in the euro zone announced a ban on short selling in the stock markets in an attempt to calm the huge volatility. Call in now for a live exchange rate.

In the USA, stocks rose again on Thursday following the worst plunge since the bull market began in 2009, as an unexpected drop in jobless claims slowed concern that the world’s biggest economy is slowing. US jobs claims for unemployment benefits fell by 7,000 to the lowest level since early April. The US dollar and euro both gained against the Swiss franc as the Swiss central bank said it could ease monetary policy further. Out today there is retail sales data so call in now for a live price.

Elsewhere, the commodity currencies have come under a little pressure in the last week as investors pull out of riskier investments given the market turmoil. One major beneficiary has been sterling, which surged to the highest level against the South African rand since late February this week. Australian unemployment jumped to 5.1% in July from 4.9 percent a month earlier. Thursday saw the New Zealand dollar after prices of commodities gained. Call in now for a live exchange rate.

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Sterling fell by 1% against the US dollar yesterday after the Bank of England downgraded its economic growth forecast for the UK. Sterling dropped to $1.6117/£1 after the Bank lowered expectations for growth to around 2% in the final quarter of 2011 in its quarterly inflation report. It also added that it expected inflation to drop rapidly next year. Sterling recovered against the euro though as debt problems and sovereign risk dogged the single currency following speculation that France will be the next country to lose its AAA credit rating after the USA. Stock markets continued to slump as investors worried that the USA or euro zone would not be able to rein in debt burdens and avoid a double-dip recession. Call in now for a live exchange rate.

In the euro zone, European shares ended sharply down yesterday, led lower by a steep sell-off in banking shares, with Societe Generale down more than 21% at one point on a slew of rumours about the bank. As a result, the euro plummeted against the US dollar and Swiss franc as concerns grew about possible trouble at French banks with large exposure to peripheral euro zone debt. Despite the ECB’s purchase of Italian and Spanish bonds, this has failed to quell concerns over the European banking system. Call in now for a live exchange rate.

In the USA, the US stocks fell again following a rebound the day before. Interestingly, Goldman Sachs expects the US dollar to weaken and recommended that its clients ‘go short’ or bet against the US currency. Markets remain concerned that the USA has no real plan to reduce its deficit and that it will plunge into recession again – with all possible stimulus methods now exhausted. Call in now for a live exchange rate.

Elsewhere, commodity based currencies such as the Australian and New Zealand dollars saw heavy losses. The higher-yielding Australian dollar dropped 1.6 percent against the U.S. currency, while the New Zealand dollar slumped 3.3 percent. However, the South African rand rebounded from a 1 year low against the US dollar as the Federal Reserve pledged to keep interest rates at near zero into next year.

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Sterling plummeted yesterday afternoon against the US dollar and euro, dropping by 1.2% against the euro as poor data and spreading looting and violence in the UK concerned investors. Manufacturing figures unexpectedly showed a 0.4% contraction against an expectation of a 0.2% gain and the trade deficit unexpectedly widened. In addition, markets clearly became concerned over the escalating rioting in the UK which had spread as far as Liverpool and Birmingham. At the end of last week, investors saw the UK as a safe haven, but with all the damage being done markets are concerned that this will impact the UK’s already weak growth even further. Later today we have the Bank of England’s inflation report, in which the Bank is expected to downgrade growth forecasts. Call in now for a live exchange rate.

In the euro zone, the euro strengthened against the US dollar yesterday as European Central Bank President Jean-Claude Trichet said the ECB was actively buying Spanish and Italian government bonds. German exports slipped unexpectedly and with stock markets still experiencing volatility and panic, the euro dropped further against the safe-haven Swiss franc. The euro has fallen by roughly 15% against the franc so far this year. Some analysts even speculated that the Swiss franc could reach parity (1:1) against the euro, despite the Swiss National Bank's recent move to cut interest rates and warnings over the franc's strength. Call in now for a live exchange rate and to avoid losing out.

In the USA, the markets rebounded off yesterday’s lows as investors focussed on Tuesday evening’s meeting of the Federal Reserve. Recent manufacturing and employment data in the country has pointed to a slowdown in the world's biggest economy, leading some to fear the country could slip back into recession. Many expected Fed Chairman Ben Bernanke to announce some form of stimulus to stabilise the economy. However, with interest rates at near zero and the last round of bond purchases having failed to stimulate credit conditions, some were unsure what options the Fed has left. In the end, the Fed pledged to keep interest rates on hold until at least 2013. Call in now for a live exchange rate.

Elsewhere, the Swiss franc soared on Tuesday to record highs for a third straight day against the euro and dollar as concerns about the global economic outlook and a rout in stock markets drove investors to safety. In addition, the Japanese yen, which also tends to benefit in times of market stress, breached 77 yen per dollar, above levels that triggered official intervention from Tokyo last week. Volatility in the safe havens is high, so call in now for a live exchange rate.

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Sterling traded close to a two-month high against the euro yesterday as investors worried that the European Central Bank purchasing of Spanish and Italian bonds would have minimal impact on the debt crisis. With no UK data released and the focus on Europe and the USA, sterling’s value was driven by risk sentiment. In a day that saw the FTSE 100 drop by 3.39% and £46bn wiped off the value of the UK’s top 100 companies, sterling made gains against both the euro and US dollar as investors bought into what is now seen as a safe haven asset. The pound fell just short of $1.65/£1 against the US dollar, but slipped back on rumours that the Bank of England will resort to further quantitative easing to boost the UK’s anaemic growth. Call in now for a live exchange rate.

In the euro zone, the ECB made good on the weekend’s promise by making moves early in the day to buy Italian and Spanish bonds to keep yields on those bonds at manageable levels. However, this did little to curb panic in the markets over the sovereign debt crisis. Stock markets plummeted across the region. Greece suspended short selling on its stock market after falling by 6% and the panic spread to France. Normally seen as a stalwart of the European region, rumours circulated yesterday that the country would be next in line for a credit rating downgrade after the USA’s rating cut late on Friday. The euro shrugged off initial gains from the ECB’s purchases, hitting a record low against the Swiss franc and dropping by 1.6% against the Japanese yen.

In the USA, following a downgrade of the USA’s credit rating on Friday, global stock markets went into freefall yesterday. The US dollar slid against the Japanese yen and Swiss franc as investors looked to safer haven currencies. In addition, manufacturing and consumer spending figures showed a contraction and added to concerns that the US recovery is slowing. Panic over the credit rating downgrade left many investors dumping stocks. One rating agency came out and affirmed it’s AAA rating but this did little to help. Call in now for a live exchange rate.

Elsewhere, the safe haven Swiss franc and Japanese yen soared against the US dollar and euro after the US debt rating downgrade and on fears the euro zone debt crisis could spread, despite efforts to contain it. Investors gave commodity currencies a very wide berth, with the South African rand plummeting by 3% against the US dollar and sterling as traders reversed riskier investments. The Australian dollar also slipped but recovered in later trading. Call in now for a live exchange rate.

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Sterling had a relatively positive week last week, hitting a 3 month high of €1.1550/£1 against the euro on Thursday. In a turbulent week for financial markets, the FTSE 100 closed the week down nearly 10% and events over the weekend did little to help that. Saturday saw credit rating agency S&P cut the USA’s credit rating by one notch from AAA to AA+ and last night European Central Bank President Jean-Claude Trichet announced that the ECB will start buying Italian and Spanish bonds in order to stop the sovereign crisis extending to these countries. Out this week we have key trade data for the UK and also the Bank of England’s inflation report. Many expect that the Bank will downgrade the UK’s growth forecasts so call in now for a live exchange rate.

In the euro zone, Spanish and Italian bond yields jumped to record highs last week as investors questioned the ability of those countries to fund their borrowing. Italy has now brought forward moves to balance the government deficit by 2013 and the ECB will now step in to buy bonds and keep the borrowing costs low. Many commentators now feel that the euro cannot go on in its current format. A fiscal union is the next logical step – the issue being that the German electorate feels it is bailing out the rest of Europe and has no control over tax levels in the bailed out countries. Call in now for a live exchange rate.

In the USA, investors awoke on Saturday morning to the monumental news that the country had been downgraded by rating agency S&P – losing the precious AAA credit rating. Naturally the move attracted criticism from all angles in the USA, but the key point is that the USA is the only country whose net spending as a proportion of GDP has increased since the start of the credit crisis, so this is hardly a large surprise. Expect to see significant volatility today so call in now to ensure you don’t lose out.

Elsewhere, the news from the USA and Euro zone over the weekend saw the Japanese markets open down 1.7% and the New Zealand stock exchange opened 3% down. Stock markets are plunging as a result of the weekend’s developments so call in now to ensure you are adequately protected.

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Sterling has had an interesting week – hitting a 3 month high against the euro yesterday of €1.1550/£1. The pound fell early in the week after poor manufacturing data, but recovered as services sector activity unexpectedly jumped. In the wake of an 11th hour agreement on raising the debt ceiling in the USA, there has been the beginnings of a paradigm shift in the market attitude to the UK. UK government bonds are now being regarded as the safe-haven option ahead of US bonds. This marks a step change in market behaviour and is testament to the UK government’s hard-line cost cutting that is in stark contrast to both the US and the euro zone. The Bank of England kept interest rates on hold but there is a large amount of volatility so call in now for a live exchange rate.

The euro plummeted on Thursday after the ECB pledged to lend euro-area banks as much money as they need for six months and extend its existing liquidity measures through until the end of the year. Keeping the interest rates unchanged at 1.50%, ECB President Jean-Claude Trichet told a press briefing in Frankfurt that the decision was taken with an “overwhelming majority.” The move prompted investors to sell the single currency in favour of sterling despite an unexpected rise in German factory orders. Italian and Spanish bonds came under yet further pressure and it looks like these countries are next in the firing line. Call in now for a live exchange rate.

It was an interesting week in the USA after Democrats and Republicans finally reached agreement over spending cuts in order to increase the debt ceiling. In a package worth $2.1trn over 10 years, the US managed to avoid a default on a key payment this week. However, despite reaching agreement, some credit rating agencies feel that the US may have not gone far enough and as such the prized AAA rating is at stake again. Call in now for a live exchange rate.

Elsewhere, Swiss and Japanese central banks intervened in the currency markets to try and devalue their respective currencies. Swiss exporters have been hit by a 40% increase in the value of the currency as markets clamber for the safe-haven of the Swiss franc. The Swiss National Bank cut interest rates and the Japanese government sold 1 trillion yen to ease pressure on the yen. Call in now for a live exchange rate.

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Sterling climbed against the US dollar and briefly touched €1.15/£1 against the euro after data unexpectedly showed that services sector activity expanded at the fastest pace in four months. Whilst this provided a welcome piece of positive economic data, analysts were keen to point out that the UK recovery is still very fragile. Figures released earlier in the week showed a sharp contraction in the level of manufacturing in the UK. Sterling ended the day up 0.85% against the US dollar and posting 1% gains against the Australian and Canadian dollars. Investors have been disappointed at relatively weak UK economic data over recent months, but some analysts are feeling cautiously optimistic that the UK government’s austerity drive will put the economy in a much stronger position than the USA or euro zone. Call in now for a live exchange rate.

In the euro zone, the euro strengthened against the US dollar yesterday after stronger than expected retail sales figures provided a welcome boost to the economic prospects of the region. Sales rebounded by 1% after the previous month’s contraction. In addition, the euro surged by 2% against the Swiss franc after an unexpected interest rate cut by the Swiss National Bank. The SNB cut interest rates and pumped in liquidity in an attempt to weaken the “massively over-valued” Swiss franc which is at record highs against many currencies following safe haven flows. Call in now for a live exchange rate.

In the USA, credit rating agency Fitch affirmed its AAA credit rating for US government debt following Congressional approval of a $2.1trn package of spending cuts, but warned that the US government must cut the debt burden in order to avoid a future default. Poor PMI data saw the US dollar drop to an all time low against the Swiss franc before the SNB’s rate intervention. There are concerns that other ratings agencies will downgrade the US on the grounds that the package does not go far enough. Call in now for a live exchange rate.

Elsewhere, with the SNB cutting interest rates in Switzerland, markets are poised for the Bank of Japan to follow suit in expanding the size of its asset buying programme. In a similar vein to the Swiss franc, the Japanese yen has surged against other currencies as investors look for safe haven investments. Call in now for a live rate to ensure you don’t lose out.

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Sterling fell to the lowest level for two weeks against the US dollar as data showed U.K. construction weakened amid mounting concern that U.S. spending cuts may curb global growth. The pound also hit an all-time low against the Swiss franc after building activity slipped in June – adding to the poor outlook after British manufacturing unexpectedly shrank the most in more than two years yesterday. Sterling had been benefiting from the dual debt crises in Europe and the USA, but focus has shifted back to UK fundamental figures. UK bonds are now cheaper than US ones showing that markets now view UK debt as a safer haven than the USA which has been the benefactor of safe haven flows for several years. The Bank of England meet tomorrow and are likely to keep rates on hold at 0.5% - call in now for a live exchange rate.

In the euro zone, Italian and Spanish bonds came under pressure again yesterday, with yields jumping to euro-era records on concern that a slowdown in global growth will stop efforts to trim sovereign debt. The euro strengthened against the US dollar as poor US spending figures dented the US dollar. Out today, there are retail sales figures and purchasing data for the euro zone so call in now for a live exchange rate.

In the USA, Congress granted final approval to a deficit-cutting package that will avert a U.S. debt default but may not be enough to prevent a damaging downgrade of the top-notch American credit rating. One rating agency warned earlier in the week that if the deal did not go far enough, it would downgrade the USA’s AAA rating. This would raise borrowing costs and dent the recovery further. Despite being passed into law, markets tumbled with US stock markets closing down nearly 3%. Further consumer spending figures showed the first drop since 2009 compounding market fears.

Elsewhere, the Canadian dollar fell to a 2 week low as the poor US spending figures dented prospects for the country’s largest trading partner. The Swiss franc strengthened against all major peers tracked by Bloomberg. European stocks fell to a 10-month low on concerns over sovereign debt. Call in now for a live exchange rate.

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Sterling fell by 1% against the US dollar yesterday after UK manufacturing data dropped to the lowest level in 2 years offering investors a stark reminder of the headwinds that face the UK economy. Markets now expect an interest rate hike of 0.25% in December 2012. At the start of the year, that expectation was for a rise in April of this year at the earliest. Whilst the Bank of England did not discuss further Quantitative Easing last month, there have been increasing calls for a second round of stimulus – notably from business secretary Vince Cable. Out later today there is construction activity data which could cause some volatility, so call in now for a live exchange rate.

In the euro zone, the euro fell further against the US dollar as stock losses and weak US manufacturing data hurt risk appetite. In addition, concerns over the ability of politicians to rein in the euro zone debt crisis and the threat of a US credit rating downgrade will keep peripheral bonds yields high for some time threatening a further bail out in the region. It is a quiet day for data, but volatility is likely to be high with the USA’s debt ceiling deadline looming this evening.

In the USA, the US dollar hit a record low against the Swiss franc and a 4 ½ month low against the Japanese yen as markets began to question the fiscal credibility of the world’s largest economy. Republicans and Democrats eventually reached a compromise on spending cuts over the weekend, and the House of Representatives approved the deal last night. Markets are still concerned that credit rating agencies will still downgrade the US credit rating as the cuts package fails to go far enough. One rating agency said that a $4 trillion package would be needed to avoid a default – this package only covers $2.4trn. US manufacturing followed the UK figures in underperforming and didn’t help investors’ feelings towards the US dollar. Call in now for a live exchange rate.

Elsewhere, the Swiss franc strengthened to records against the dollar, pound and euro as concern that US government debt will be downgraded stoked demand for the haven currency. In addition, the South African rand declined against the US dollar after the poor US manufacturing report. Call in now for a live exchange rate.

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Sterling has started the week above $1.64/£1 against the US dollar after weak US data last week and the ongoing deadlock over the US debt ceiling continued over the weekend. Whilst it appears that a deal has now been struck in the USA, the deal still needs to be approved by the Senate. Whilst the pound has benefited from being the ‘best of a bad bunch’ of late due to the UK’s tough austerity measures, weak economic figures mean that the Bank of England is unlikely to touch interest rates for some time. Without the prospect of higher returns, investors are likely to shy away from sterling which could see it remain weak for some time. The Bank of England meets later this week – given the Bank’s recent form, it is almost a given that there will be no changes made to monetary policy. Call in now for a live exchange rate.

In the euro zone, the European debt crisis is still a major concern for investors but some of the focus has been elsewhere following the ongoing impasse in the USA. Friday saw credit rating agency Moody’s threaten to slash Spain’s credit rating and Spain’s Prime Minister called early elections. The crisis in the region is of far more concern over the long term than the US debt ceiling issues and out today we have a wide variety of Purchasing Manager surveys that should paint an interesting picture of business sentiment across Europe post-Greek bailout. Call in now for a live exchange rate.

In the USA, the big news of the morning is that an agreement had been reached in the 11th hour to raise the US debt ceiling and avoid a default. The plan is yet to be agreed by the Senate, but contains 3 key stages. Firstly, it would see $400bn added to the ceiling with a further $500bn added later this year pending a vote of approval. A further increase of $1.5trn would also be put to a vote. Notably, the deal includes spending cuts totalling $2.4trn, but no tax rises. It is not known whether rating agencies will see this as going far enough to address the debt mountain and as a result a downgrade could still be on the cards.

Elsewhere, the Swiss franc and gold continue to surge forward as investors look to safe haven assets. In addition, silver has been incredibly volatile of late as another precious metal safe haven investment. Call in now for a live exchange rate.

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